Egyptian developer Sixth of October for Development and Investment Company (SODIC), majority owned by the Abu Dhabi-based Aldar-ADQ consortium, plans to buy up to 100 percent of Madinet Nasr Housing & Development (MNHD).
SODIC said in a stock exchange statement that it has submitted a non-binding offer (NBO) to the board of directors of EGX-listed MNHD for a potential cash acquisition of up to 100 percent of the real estate company’s share capital through a mandatory tender offer.
The Cairo-headquartered MNHD focuses on East Cairo area, where its two flagship projects (Taj City and Sarai) are located.
The NBO offers an indicative purchase price in the range of 3.20 to 3.40 Egyptian pounds per share, the statement said, adding that a mid-point range of 3.30 pounds values the company at 6.18 billion pounds ($328 million).
It said SODIC intends to submit a mandatory tender offer in accordance with applicable laws and regulations following a satisfactory outcome of the due diligence process, including SODIC's internal corporate approvals and the internal approvals of its controlling shareholders.
The Aldar-ADQ consortium owns 85.5 percent of shares since December 2021.
The transaction, if completed, would expand SODIC’s footprint in the East Cairo market and leverage both developers’ strengths to create value through a combined undeveloped land bank of approximately 11 million square metres.
(Writing by Marwa Abo Almajd; Editing by Anoop Menon)